Unions, NDP in northwestern Ontario call for government action amid sawmill shutdowns

Local unions representing mill workers in northwestern Ontario are continuing to push the provincial and federal governments for support amid growing uncertainty within the forestry sector.

Leaders with Unifor, the United Steelworkers and Ontario’s New Democratic Party (NDP) issued a joint letter to both governments on Wednesday, urging them to “take immediate action to prevent the closure of the Ignace sawmill and reopen the Ear Falls sawmill and Terrace Bay pulp mill.”

The Ignace sawmill, owned by Domtar, is the latest mill in the region to face an impending shutdown. The facility is expected to begin idling in March and displace between 19 and 25 workers, according to the township.

Meanwhile, Interfor’s sawmill in Ear Falls has been shut down since October, and AV Group’s pulp mill in Terrace Bay has been idling since January 2024. 

And on Thursday, Thunder Bay Pulp and Paper announced it is discontinuing its newsprint mill operations due to a decline in demand, affecting 150 people.

“Forestry is not just an industry in northern Ontario — it is a way of life. It sustains families, supports local economies, and provides the wood products essential to building Canadian homes,” says Wednesday’s joint letter.

“The indefinite closure of the Ignace, Ear Falls and Terrace Bay mills threatens not only the livelihoods of its workers but the future of sustainable forestry in our region.”

The letter is signed by Jacques Jean of United Steelworkers Local 1-2010, Mushkegowuk—James Bay MPP Guy Bourgouin, Thunder Bay—Superior North MPP Lise Vaugeois and Unifor’s regional director Samia Hashi.

It asks the governments to create an industrial forestry strategy to protect jobs, defend against economic threats such as tariffs, and do more to modernize the sector.

As well, the letter calls for mill workers to “receive an equity stake in the operation.”

“For decades, forestry workers have carried this industry through cycles of boom and bust, often enduring wage cuts and uncertainty. They deserve more than a paycheque; they deserve a stake in the future they help build,” it says.

The letter includes a petition with more than 250 signatures, and requests a response by Feb. 13.

Provincial, federal governments respond

The office of Kevin Holland, Ontario’s associate minister of forestry and forest products and MPP for Thunder Bay—Atikokan, provided an emailed statement on Wednesday, which says “we are actively working with local leaders and industry partners to support workers and communities through this period.”

“Our government is already supporting affected workers [to] ensure they have access to the resources they need,” it says.

“Ontario’s Ministry of Labour, Immigration, Training and Skills Development has been in touch with both companies and will initiate Rapid Re-employment and Training Services, including the option of establishing a POWER (Protect Ontario Workers Employment Response) Centre, along with other available supports as required,” the statement says, referring to the mills owned by Interfor and Domtar.

WATCH | What happens to a small town when the last mill closes:

What happens to a small town when the last mill closes

December 13, 2025|

Duration 5:53

As the economy changes, there is growing concern that small towns across the country are in crisis as they lose industries and jobs and families are forced to move away.

The province has spent more than $150 million to support the sector, it continues, and is advocating for “its fair share” of federal funding “to help Canada’s forestry sector respond to these pressures.”  

At the federal level, CBC News received an emailed response on Friday from a spokesperson for Employment and Social Development Canada, Mila Roy.

Roy says the department held joint information sessions at the end of October for employees at the Ear Falls Sawmill, where they “were provided with information on how to complete Employment Insurance applications.”

“A meeting is currently being organized with the Ignace Sawmill and Service Canada representatives to determine the most effective approach to support the affected employees,” says Roy. “Employment and Social Development Canada will continue to monitor and provide support as needed for the impacted communities.”

As well, Roy pointed to measures announced last year to support those affected by ongoing challenges within the Canadian softwood lumber industry, including career services, skills training and re-employment support and new employment insurance measures.